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Former President Peña Placed Under House Arrest After Impeachment Over Ueno Bank Collapse

Former Paraguay president Santiago Peña is now under house arrest following his impeachment amid the collapse of digital bank Ueno and a 3‑million‑account freeze.

By PulseWire NewsSource: tass.com1 min read
Former President Peña Placed Under House Arrest After Impeachment Over Ueno Bank Collapse
Image via tass.com

In brief

In a swift move, Paraguayan authorities put former President Santiago Peña under house arrest on Friday after lawmakers approved his impeachment over the collapse of the digital bank Ueno. Senators had voted 44‑to‑zero to remove Peña, while Vice‑President Pedro Alliana swore the oath as president earlier this week. Protesters gathered outside Peña’s residence as police maintained a security cordon.

Former President Santiago Peña was placed under house arrest in Asuncion on Friday after Paraguay’s Senate voted to impeach him over the collapse of digital bank Ueno, which had frozen the accounts of about 3 million customers.

In an extraordinary session that aired live on the chamber’s YouTube channel, senators cast 44 votes in favor of the impeachment, with one senator absent. Chairman Basilio Nunez declared "44 votes were cast in favor of issuing a guilty verdict; one senator was absent."

Alliana, the Vice‑President, took the presidential oath in the presence of members from both houses of Congress on the same day, following the unanimous removal of Peña. The move followed a June 5 vote in the lower house to launch the impeachment process, triggered by accusations of a conflict of interest tied to Peña’s alleged ties with Ueno.

Supporters of the impeachment accuse Peña of improper conduct, citing his alleged connections to the bank as a conflict of interest. The accusations remain unverified, reported by TASS.

According to Reuters, authorities said Peña would remain under house arrest while the public prosecutor’s office determines the final charges against him. Protesters gathered outside his residence, and police secured a cordon around the property as the security situation tightened.

The Central Bank had earlier, on November 1, placed Ueno under external administration, in effect freezing the bank’s accounts and creating a political and financial crisis that led to the impeachment proceedings.

Under Paraguay’s constitution, all former presidents become lifelong senators, except in cases of impeachment, leaving Peña’s future in the Senate uncertain while he remains confined under house arrest.

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